Tesla disclosed that it delivered 386,810 vehicles in the first quarter of 2024, marking a significant decline from both the previous quarter and the same period in 2023. This represents a 20 percent decrease from the 484,507 vehicles delivered in Q4 2023 and an eight percent dip year-over-year, marking Tesla’s first annual sales decline since 2020. The figures also fell below analysts’ projections, who anticipated Tesla to deliver 449,080 EVs on average.
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Several mitigating factors contributed to the decline. Tesla faced disruptions due to an arson attack, forcing the closure of its factory in Germany for nearly a week. Shipping disruptions resulting from attacks on international shipping in the Red Sea also led to a halt in production at the Berlin-area facility for two weeks. Additionally, an early production ramp-up of the revised Model 3 impacted deliveries.
Tesla reported manufacturing 412,376 Model 3 and Y vehicles and 20,995 other models, totalling 433,371 vehicles in the first quarter. Of these deliveries, 369,783 were Model 3s and Model Ys. However, Tesla did not disclose the number of Cybertrucks built and delivered.
To boost sales at the quarter’s end, Tesla reintroduced a free trial of Full Self-Driving and hinted at an impending price increase on April 1, prompting prospective buyers to make purchases. Indeed, on Monday, the company raised the price of every Model Y trim by $1,000 in the US.
Elon Musk, Tesla’s CEO, cautioned investors earlier this year about “two major growth waves” and anticipated “notably lower” sales growth in 2024 as the company transitions from the Model 3 and Y boom to a lower-cost EV expected in late 2025.
